High operational cost justifies fee hike, says association


Heavy duty: A teacher monitoring some children at one of the childcare centres in Kampung Baru, Bukit Mertajam, during playtime. — ZHAFARAN NASIB/The Star

PETALING JAYA: Continuous increases in the accumulated overhead expenses for materials, food, salary and operational costs are the reasons why kindergarten fees will be increased by between 20% and 40% this year, says Association of Registered Childcare Providers Malaysia (PPBM).

PPBM president Sheila Prasad said that besides private kindergartens, the increase will also affect childcare centres that offer both education and daycare services.

Typically, a parent would need to pay RM1,200 for kindergarten fees per child, depending on their location, she said.

“Mid-level kindergarten and childcare centres usually charge monthly fees of around RM600 per child, covering meals, materials, operational costs, and staff wages.

“If the minimum wage for staff is increased, parents can expect about 20% to 40% increase in fees, depending on the location and services offered by the centre as well as the number of staff,” she said when contacted.

Sheila said the increase will definitely impact low and middle income families.

Kids’ Cove principal and founder Ravitha Paramesan said the increase in fees is expected to take place mid-year as they want to give parents time to decide whether to stay on or find an alternative place for their child.

“Over the past five years, we have not increased our fees although we have seen others, especially international schools, raise theirs and parents are paying the new rates.

“At the moment, we are exceeding our budget due to costs of materials, food and salaries. We have a number of teachers in the school, and we want to retain trained staff and they are expecting salary increments.

“Those in the lower bracket, like assistant teachers, are expecting salary increments between RM100 and RM150 while degree holders are expecting between RM250 and RM350.

“It is not fair that we have to absorb all the costs, especially when our overhead has gone up so much,” she said.

Kids’ Cove currently operates three branches with daycare facilities in Bangsar, Sentul and Puchong, minding about 90 children ranging from babies to 11 years old.

Private kindergarten operator Irene Tan said most childcare centres will have to adjust their monthly fees due to the increase in minimum wage from Feb 1 this year.

This is because staff in kindergartens, such as helpers, cleaners, teacher assistants and part-time teachers, are receiving minimum wage.

“Some parents asked me why the fees are going up. Most understood our situation, but some had to change kindergartens because they couldn’t afford the new rate, said Tan who is based in Kedah.

JetKinderland senior principal Sally Ng said kindergarten operators cannot raise their fees arbitrarily.

“To increase fees, kindergartens need to ask the Education Ministry, which has set rules and regulations to ensure fees are not raised by more than 30% every three years, she said.

Based in Penang where the population of young children is declining, Ng said, it is necessary for some kindergarten operators there to increase prices to sustain their business.

Ng is planning to increase the fees at her kindergarten by 10%, saying it hasn’t been done for a few years.

Tan said it will be great if the government could provide subsidy for kindergartens in terms of teachers’ wages.

In the 2025 Budget, the government has extended income tax relief of up to RM3,000 for nursery or kindergarten fees to support working parents, from 2025 to 2027.

Kindergarten teachers are eligible for the increased minimum wage of RM1,700 per month.

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